Mar 31, 2015
I) BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS
The financial statements has been prepared in accordance the historical
cost convention, accounting Standards issued vide Companies (Accounting
Standards), Rules 2006, as prescribed under section 133 of the
Companies Act 2013 read with rule 7 of Companies (Accounts) Rule, 2014
and other relevant provisions of the Companies Act 2013 and earlier
year financial statement were prepared as per relevant provision of
Companies Act 1956 (refer general circular 08/2014 dt. 04/04/2014 of
the Ministry Corporate Affairs for applicability of relevant
provisions/schedules/rules of the Companies Act, 1956 for the financial
statements prepared for the financial year commenced earlier than
01.04.2014) and the provisions of the Companies Act, 2013 (to the
extent applicable).
ii) USE OF ESTIMATES
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect reportable amounts of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the year in
which the results are known /materialized.
iii) RECOGNITION OF INCOME/EXPENDITURE
All income & expenditure having a material bearing on the financial
statements is accounted for on an accrual basis and provision is made
for all known losses and liabilities.
Further, sales include revision in prices received from customers with
retrospective effect. Similarly, price revision for material purchased
has also been included in purchases. Further adjustment, if any, are
made in the year of final settlement. Dividend Income is recognize when
the right to receive the dividend is established by the balance sheet
date. Interest income is recognized on time proportion basis.
iv) FIXED ASSETS
Fixed assets are stated at original cost plus any directly attributable
cost of bringing the assets to their working condition for intended
use.
v) IMPAIRMENT OF ASSETS
The carrying amount of assets are reviewed at each balance sheet date
to ascertain if there is any indication of impairment based on
internal/external factors.
If the carrying amount of the assets exceeds its estimated recoverable
amount, an impairment loss is recognized in the profit & loss account
to the extent the carrying amount exceeds the recoverable amount.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment, recognized for the
assets, no longer exist or has decreased.
vi) DEPRECIATION
The estimated useful lives of fixed assets have been revised in
accordance with schedule II to The Companies Act 2013, w. e .f. 1st
April, 2014. Further Depreciation has been provided on straight- line
method at the appropriate rates in accordance with schedule II of the
Companies Act, 2013.
vii) FOREIGN TRANSACTIONS
The Company has not transacted any foreign transaction during the year
2014-15. viii) INVESTMENTS
The company has no investments as on 31.03.2015 .
ix) BORROWING COST
Borrowing cost attributable to acquisitions and construction of assets
are capitalized as a part of cost of such assets up to the date when
such assets are ready for its intended use and other borrowing cost are
charged to Profit & Loss Account. But the company has not taken any
loan for the purchase of any capital assets during the year 2014-15.
x) VALUATION OF INVENTORIES
The closing stock has been valued at cost or net realizable value
whichever is less as at 31.03.2015 as per Accounting Standard Â2 issued
by The Institute of Chartered Accountants of India.
xi) EMPLOYEE RETIREMENT BENEFITS
Retirement benefits in the form of Provident Funds/ Pension schemes are
defined contribution schemes and the contribution will be charged to
the Profit & Loss account of the year when the contribution to the
respective funds becomes due. No provision for gratuity has been made
for 2014-15.
xii) CURRENT TAXES
Income Tax expense comprises of current tax and deferred tax charge or
credit. Provision for current tax is made with reference to taxable
income computed for the financial year for which the financial
statements are prepared by applying the tax rates as applicable.
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement
of Profit and loss as current tax. The company recognize MAT credit
available as an assets only to the extent there is convincing evidence
that the company will pay normal income tax during the specified
period, i.e. the period for which MAT Credit is allowed to be carried
forward. In the year in which the company recognize MAT Credit as an
assets in accordance with the Guidance Note on Accounting for credit
Available in respect of Minimum alternate tax under the Income Tax Act,
1961, the said assets is created by way of credit to the statement of
Profit and loss and shown as "MAT Credit Entitlement". The Company
reviews the "MAT Credit Entitlement" assets at each reporting date and
writes down the assets to the extent the company does not have
convincing evidence that it will pay normal tax during the sufficient
period.
Deferred income tax charge reflects the impact of current period timing
difference between taxable income and accounting income. The deferred
tax charge or credit is recognized using prevailing enacted or
substantively enacted tax rates. Where there is an unabsorbed
depreciation or carry forward loss, deferred tax assets are recognized
only if there is virtual certainty of realization of such assets. Other
deferred tax assets are recognized only to the extent there is
reasonable certainty of realization in future. Deferred tax
assets/liabilities are reviewed as at each balance sheet date based on
developments during the period and available case laws, to reassess
realizations/liabilities.
xiii) RESEARCH AND DEVELOPMENT
In accordance with the Accounting Standard (AS)-26, the company has no
activity of Research & Development during the year 2014-15.
xiv) EARNINGS PER SHARE
Basic Earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period. For the purpose of calculating Diluted earnings per share,
the net profit for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xv) CONTINGENT LIABILITIES, CONTINGENT ASSETS & PROVISIONS
Contingent liabilities, if material, are disclosed by way of notes and
contingent assets are not recognized or disclosed in the financial
statements. A Provision is recognized, when an enterprise has a present
obligation as a result of past events and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation, in respect of which a reliable estimate can be
made for the amount of obligation.
xvi) TECHNICAL KNOW-HOW
The company has not incurred any expenses for the technical know Âhow.
Mar 31, 2014
A) BASIS OF ACCOUNTING: The financial statements have been prepared in
accordance with Generally Accepted Accounting Principles (GAAP) in
India and presented the historical cost convention on accrual basis of
accounting to comply with the accounting standards prescribed in the
Companies (Accounting Standards) Rules, 2006 and with the relevant
provisions of the Companies Act, 1956.
b) USE OF ESTIMATES: The preparation of consolidated financial
statements in conformity with Generally accepted accounting Principles
(GAAP) in India requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosures of contingent liabilities on the date of financial
statements and reported amounts of income and expenses during the
period.
c) The previous years' figures have been regrouped and rearranged
wherever considered necessary to make them comparable with current
year's figures.
d) INVESTMENTS: - The company has investments as on 31.03.2014 for Rs.
418000/- in the unquoted equity shares and any diminishing in the value
of shares is considered temporary and no provision has been made.
e) REVENUE RECOGNITION: - Income and the expenditure has accounted for
on accrual basis during the year 2013-14.
f) FIXED ASSETS: - Fixed assets are stated at original cost plus any
directly attributable cost of bringing the assets to their working
condition for intended use. Assets under the head of Plant & machinery
as on 01.04.2013 having W. D. V. of Rs. 45188.77 has been shown under
the head of Office Equipment
g) DEPRECIATION: - Depreciation is provided on straight-line method at
the appropriate rates in accordance with schedule XIV of the companies
Act, 1956. Dep. on Computer purchased prior to 2013-14 has been
provided Rs. 26249.35/- after keeping the 5% value as a residual amt.
of the gross amt. (i.e. Dep. 26249.35 has been provided instead of
30185.61)
h) FOREIGN TRANSACTIONS: - The Company has no foreign transactions
during the year 2013-14.
i) CURRENT ASSETS: - The closing stock has been valued at cost or net
realizable value which ever is less as at 31.03.2014 as per Accounting
Standard -2 issued by The Institute of Chartered Accountants of India.
j) PROVISIONS: - Provision for Income Tax Rs. 157170.00 and expenses
payable has been made for the year 2013-14.
Mar 31, 2013
1. GENERAL:
The financial statements are prepared under historical cost convention.
The expenses are accounted on accrual basis with provision for the
known liabilities and losses, if any.
The company is not following prudential norms for income recognition as
prescribed by RBI for NBFC. The company has applied to R.B.I. for
conversion from A category to B category.
2. NBFC STATUS
The Company has applied for registration with RESERVE BANK OF INDIA and
the same has been received.
3. SUBSIDIARY COMPANY
The Company has applied to Company Law Board for investment in
subsidiary Company i.e. Northlink Securities Private Limited. However,
the permission is still awaited. The Investment in subsidiary has been
sold during the year ended 31.03.2004. Therefore subsidiary company M/s
Northlink securities (P) Ltd. Has been desubsidiarised.
4. REVENUE RECOGNITION:
Lease Rentals Income is recognized on annual basis and debited to
lesser as at the end of the year.
5. FIXED ASSETS:
Fixed assets are stated at cost less accumulated depreciation.
6. DEPRECIATION:
Leased assets are depreciated on written down value method at the rates
prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on
additions/deletions during the year is provided on pro-rata basis. The
company does not follow the revised guidance note issued by the
Chartered Accountants of India in respect of Leased Assets acquired on
or after 1st April, 1995.
7. OWNED ASSETS: -
Owned assets are depreciated on SLM at the rates prescribed by Schedule
XIV of the Companies Act, 1956.
8. Material events occurring after the balance sheet date are taken
into consideration.
9. Prior period and extra ordinary items and changes in accounting
policies having material impact on the financial affairs of the
company, if any, are disclosed.
10. The accounts of the company are prepared as a going concern basis.
11. Borrowing cost that are that are directly attributable to the
acquisition, construction or production of a qualifying assets are
capitalized as part of the cost of that assets. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
However no borrowing cost has been capitalized during the year.
12. Amount due from the Company/Firms or Relatives in which the
directors of the company are interested during the year is Rs. 422.23
Lacs. (Previous year Rs. 413.75 Lacs)
13. INVESTMENTS: -
Investments are stated at cost. Investments in case of Shivalikwala
Steel Mills Ltd., Northlink Securities (P) Ltd. & Shivalik Loha Mills
Ltd. were earlier sold at book value.
14. STOCK: -
Stock in hand, if any i.e. shares and securities are valued at lower of
cost or market price which ever is less.
15. PRELIMINARY & PRE-OPERATIVED EXPENSES: -
Preliminary & Pre-operative expenses and public issue expenses will be
written off over a period of 10 years.
16. CONTINGENT LIABILITIES: -
The Reserve Bank of India has conducted the inspection for the
financial year 31.03.2002 and its inspection report CHD.
DNBS/16.02.1511/2003-2004 dated 12.08.2003 has reported that the
company is in default in maintenance of S.L.R. investment and R.B.I.
has imposed penalty of Rs. 104024.00. The company has not paid that
amount till today and has not provided any provision for the same.
Mar 31, 2011
1. GENERAL :
The financial statements are prepared under historical cost convention.
The expenses are accounted on accrual basis with provision for the
known liabilities and losses, if any.
The company is not following prudential norms for income recognition as
prescribed by RBI for NBFC. The company has applied to R.B.I. for
conversion from A category to B category.
2. NBFC STATUS
The Company has applied for registration with RESERVE BANK OF INDIA and
the same has been received.
3. SUBSIDIARY COMPANY
The Company has applied to Company Law Board for investment in
subsidiary Company i.e. Northlink Securities Private Limited. However,
the permission is still awaited. The Investment in subsidiary has been
sold during the year ended 31.03.2004. Therefore subsidiary company M/s
Northlink securities (P) Ltd. Has been desubsidiarised.
4. REVENUE RECOGNITION :
Lease Rentals Income is recognized on annual basis and debited to
lesser as at the end of the year.
5. FIXED ASSETS :
Fixed assets are stated at cost less accumulated depreciation.
6. DEPRECIATION :
* Leased assets are depreciated on written down value method at the
rates prescribed by Schedule XIV of the Companies Act, 1956.
Depreciation on additions/deletions during the year is provided on
pro-rata basis. The company does not follow the revised guidance note
issued by the Chartered Accountants of India in respect of Leased
Assets acquired on or after 1st April, 1995.
7. OWNED ASSETS: -
Owned assets are depreciated on SLM at the rates prescribed by Schedule
XIV of the Companies Act, 1956.
8. Material events occurring after the balance sheet date are taken
into consideration.
9. Prior period and extra ordinary items and changes in accounting
policies having material impact on the financial affairs of the
company, if any, are disclosed.
10. The accounts of the company are prepared as a going concern basis.
11. Borrowing cost that are that are directly attributable to the
acquisition, construction or production of a qualifying assets are
capitalized as part of the cost of that assets. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
However no borrowing cost has been capitalized during the year.
12. Amount due from the Company/Firms or Relatives in which the
directors of the company are interested during the year is Rs. 416.74
Lacs. (Previous year Rs. 394.57 Lacs)
13. INVESTMENTS: -
Investments are stated at cost. Investments in case of Shivalikwala
Steel Mills Ltd., Northlink Securities (P) Ltd. & Shivalik Loha Mills
Ltd. have been sold at book value.
14. STOCK: -
Stock in hand, if any i.e. shares and securities are valued at lower of
cost or market price which ever is less.
15. PRELIMINARY & PRE-OPERATIVED EXPENSES: -
Preliminary & Pre-operative expenses and public issue expenses will be
written off over a period of 10 years.
16. CONTINGENT LIABILITIES: -
The Reserve Bank of India has conducted the inspection for the
financial year 31.03.2002 and its inspection report CHD.
DNBS/16.02.1511/2003-2004 dated 12.08.2003 has reported that the
company is in default in maintenance of S.L.R. investment and R.B.l.
has imposed penalty of Rs. 104024.00. The company has not paid that
amount till today and has not provided any provision for the same.
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